CLA-2-61: RR:NC:TA:361 L81909
Ms. Yoo Won Jung
Sae-A Trading America Corporation
100 West 33rd Street #855
New York, NY 10001
RE: The status under the United States-Caribbean Basin Trade Partnership Act (CBTPA) of a woman’s top from Guatemala.
Dear Ms. Jung:
In your letter of January 4, 2005, you requested a letter on CBTPA eligibility for a woman’s knit top. The sample will be returned as requested.
Style GL531041 is a woman’s top constructed from 95 percent rayon, five-percent spandex knit fabric. The top has ¼ inch adjustable shoulder straps, a V neckline in front, and knit openwork lace-like trim around the V neckline and bottom edge. The upper back of the garment extends across the back from side seam to side seam, beginning at the lowest part of the armhole. The shoulder straps are made in two parts: the front 2/3 of the shoulder straps are an extension of the capping used to finish the upper back and armholes; the back 1/3 is constructed from elasticized fabric and has adjusters.
You state that the sourcing/manufacturing process for the garment will be as follows:
Body fabric – US origin, made from US yarns
Sewing thread - Guatemala
Narrow elasticized fabric used for back of shoulder straps - Korea
Fabric will be cut and assembled into a completed garment in Guatemala
The applicable subheading for style GL531041 will be 6114. 30.1020, Harmonized Tariff Schedule of the United States (HTS), which provides for other garments knitted or crocheted: Of man-made fibers: women’s tops. The rate of duty is 28.2 percent ad valorem.
Style GL531041 falls within textile category designation 639. Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cbp.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel, at otexa.ita.doc.gov.
Based on the information provided, and provided all other requirements are met, the garment may be eligible under subheading 9820.11.18 if the non-originating items are considered findings and trimmings.
Subheading 9820.11.18 provides:
Knitted or crocheted apparel articles cut and assembled in one or more such countries from fabrics wholly formed in the United States from yarns wholly formed in the United States, or from components knit-to-shape in the United States from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if such fabrics are classifiable in heading 5602 or 5603 of the tariff schedule and are formed wholly in the United States), if such assembly is with thread formed in the United States, and under the terms of U.S. note 2(a) to this subchapter
As provided for in U.S. Note 1, Subchapter XX of Chapter 98, HTSUS, Guatemala is a designated beneficiary sub-Saharan African country.
The main fabric for the body of the garment as well as the sewing thread meets the above requirement. However, the back portion of the shoulder strap does not. In addition, it is not considered a finding or trimming in accordance with US note 3 to subheading 9820, which states, in pertinent part:
3. (a) An article otherwise eligible for preferential treatment under any provision of this subchapter shall not be ineligible for such treatment because the article contains--
(i) findings or trimmings of foreign origin, if the value of such findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article;
(b) For purposes of subdivision (a)(i) above, findings or trimmings eligible under such subdivision include sewing thread, hooks and eyes, snaps, buttons, “bow buds”, decorative lace trim, elastic strips, zippers (including zipper tapes) and labels and other similar products. Elastic strips are considered findings or trimmings only if they are each less than 2.54 cm in width and used in the production of brassieres. For purposes of articles described in subheading 9820.11.06, 9820.11.18, and 9820.11.33, sewing thread shall not be considered to be findings or trimmings.
The back portion of the shoulder strap does not meet the above description of a finding or trimming. Instead, it is a component of the garment, and must conform to the requirements of 9820.11.18. The fabric must be made of US yarns and US fabric. Since the fabric is made in Korea, the garment is ineligible for CBTPA treatment.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding this ruling, contact National Import Specialist Angela DeGaetano at 646-733-3052.
Sincerely,
Robert B. Swierupski
Director
National Commodity
Specialist Division